Industrial Property with Outdoor
For Sale
Contact for pricing
8430 Covington Hwy, Lithonia, GA 30058
M2-Heavy Industrial zoning accommodates a substantial industrial site with multiple buildings and outdoor storage.
Property Size17,000 SF
Lot Size5.03 Acres
Price / SF$205.88
Days on Market12
Property Features for 8430 Covington Hwy
General Information
Standard status
Active
Size
17,000 SF
Lot size
5.03 Acres
Property subtype
Industrial, Land
Zoning
M2- Heavy Industrial
Investment Type
Redevelopment
Financials
Asking Price
$3,500,000
Business Included
Yes
Site & Location
Highway Access
Yes
Road Access
Yes
Outdoor Storage
Yes
Additional Details
Land Use
industrial
Building Details
Year Built
1974
Buildings
3
Stories
1
Tenancy
Multi
Listing Agency:
VCR Realty Group
Listed By:
Jake Foss · License #GA 425751
Source:
Crexi
Added: Jul 31
Changed: Aug 4
Last Checked: Aug 11 at 2:13PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of VCR Realty Group
Investment Insights
Based on property information with market context.
This industrial property at 8430 Covington Hwy in Lithonia, Georgia, occupies ±5.03 acres and includes multiple industrial buildings totaling ±17,000 square feet. Constructed in 1974, the site combines developed building area with extensive outdoor storage and is zoned M2-Heavy Industrial.
The property offers access to Interstate 20 and includes licensed and permitted businesses involving towing, vehicle impound operations, used auto parts, used car sales, and outside storage. The businesses are also available for sale, and the four existing leases can be terminated. Current improvements and the large outdoor component support a range of industrial operations, including owner-user, contractor, fleet, equipment, trucking, recycling, and industrial outdoor storage applications.
The property offers access to Interstate 20 and includes licensed and permitted businesses involving towing, vehicle impound operations, used auto parts, used car sales, and outside storage. The businesses are also available for sale, and the four existing leases can be terminated. Current improvements and the large outdoor component support a range of industrial operations, including owner-user, contractor, fleet, equipment, trucking, recycling, and industrial outdoor storage applications.
Key Highlights
- ±5.03 acres with ±17,000 square feet across multiple industrial buildings
- M2‑Heavy Industrial zoning
- Extensive outdoor storage component
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$239,111
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.83%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,782,220
$4.8M
Cap Rate 7%
$3,415,871
$3.4M
Cap Rate 9%
$2,656,789
$2.7M
Market Conditions
NOI Build-Up for 17,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$373.3K $21.96/SF
− Vacancy
−$31.7K −$1.87/SF
EGI
$341.6K $20.09/SF
− OpEx
−$102.5K −$6.03/SF
NOI
$239.1K $14.07/SF
Area
DeKalb County, GA
Vacancy
8.50%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,782,220
Cap Rate 7%
$3,415,871
Cap Rate 9%
$2,656,789
Alternative Uses
Best Use
Retail
$3.42M
$2.99M – $3.99M
NOI $239,111 @ 7.0% cap · market cap 6.83%
Second Best
Industrial
$1.48M
$1.29M – $1.73M
NOI $103,561 @ 7.0% cap · market cap 2.96%
Theoretical Best
Office A
$4.75M
$4.16M – $5.54M
NOI $332,651 @ 7.0% cap · market cap 9.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Turnkey business
Opportunity
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
747
Businesses Nearby
Explore this area
Business Placement
Demographics for 30058, GA
59,445
Population
23,671
Households
2.5
Avg Household Size
36
Median Age
30%
College-Educated
90%
High-School Grad
30.5 sq mi
ZIP Area
1,949
Density / Sq Mi
$62,633
Median Household Income
$36,992
Median Earnings
$1,478
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Industrial in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - M2-Heavy Industrial zoning accommodates a substantial industrial site with multiple buildings and outdoor storage.
Where is this industrial property located?
The property is located at 8430 Covington Hwy Lithonia, GA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: ±5.03 acres with ±17,000 square feet across multiple industrial buildings; M2‑Heavy Industrial zoning; Extensive outdoor storage component
